Cab company in no panic over advent of ride-hailing
B.C. introduces legislation to allow services like Uber
With ride-hailing services like Uber and Lyft less than a year away in B.C., Checkmate Cabs in Kelowna isn’t too concerned.
“I’m sure it will impact us in the first three or four months because it’s a new thing and everyone will want to try it,” said Checkmate director and dispatcher Wolfgang Maschner.
“But in the long run we’re not worried. Uber fares may be a little lower regularly, but its surcharges can make rides twice as much. So I think people will continue to use cabs because we’re consistent.”
On Monday, the provincial government introduced the Passenger Transportation Amendment Act as the next step in its promise to enable ride-hailing in B.C.
Victoria’s goal is to have services like Uber and Lyft launch in the province by next fall.
Vancouver, one of the few major cities in Canada that currently doesn’t permit ride-hailing, will likely be the first target of Uber and Lyft.
But the services are expected to spread quickly to B.C.’s mid-sized cities, such as Victoria, Kelowna, Penticton, Vernon and Prince George.
As Kelowna’s second-biggest taxi company, Checkmate has 24 cabs on the road currently and will add another three shortly, an indication it’s business as usual despite the upcoming competition from Uber and Lyft.
The city’s largest taxi company is Kelowna Cabs, with 88 vehicles.
Over the years, there have been grumblings in Kelowna that cabs are expensive and scarce, especially if you’re trying to find one on busy nights after a sporting event or concert, or when bars close for the evening.
Generally, Uber and Lyft are cheaper than a taxi in most cities where they are an option.
However, the wild card with ride-hailing services is what’s called surge pricing, a surcharge during times of high demand like the aforementioned post-concert, post-hockey-game or bar-closing rush.
Such extra levies could make the price of an Uber or Lyft ride double or triple what it would regularly be.
Taxis use a meter and don’t have surcharges.
Another of Uber’s and Lyft’s competitive advantages to start was virtually everything was done via app.
That includes hailing the ride, seeing how far the car is away and finding out the name of the driver to what kind of car he or she is driving, automatic payment with the credit card on file and receipt sent to you be email.
Initially, Uber and Lyft didn’t have tips for the drive, but that is now an option in many cities.
Cab companies have jumped on the app bandwagon as a result.
For instance, the app Checkmate Cabs uses allows passengers to hail at the press of a button and see how far away the car is and track its progress toward you.
However, it does not have a photo of the driver, and the cost of the ride is not automatically billed to your credit card.
“We take credit cards, but it’s not automatic because I don’t think most people want someone else having all their credit card information on file,” said Maschner.
Of course, you can also be oldschool with a cab and pay in cash, and you can tip a taxi driver as well.
B.C. legislation will give the Passenger Transportation Board the power to accept applications and set terms and conditions for licences covering taxis and ridehailing services.
It will also set rates and determine the number and coverage areas of the services.
The legislation also sets requirements for insurance and public safety.
No everyone is happy ride-hailing is coming to the province.
The B.C. Federation of Labour is disappointed because it says it does nothing to promote good-paying, stable jobs and it fails to establish protections for workers from large multinational companies like Uber that have bad labour relations records.